The Louisiana House backed a proposal Thursday to begin rolling back the temporary sales tax extension that was the solution to last year’s budget deficit. That compromise took several special sessions to reach.
Facing a steep drop in state revenue last year, the Louisiana Legislature agreed to partially extend the state sales tax by .45% until 2025. But as the state’s finances have moved from deficit to surplus, some Republican lawmakers are reconsidering the temporary tax.
Louisiana’s legislature is about three weeks away from the start of a fiscal session. For two months, lawmakers will debate tax policies in the state. Taking center stage could be a bill from Representative Tanner Magee (R-Houma).
Last year, the United States Supreme Court ruled that states could collect sales tax on internet purchases from retailers who don't have a physical location in the state. Since then, Louisiana has been ironing out how that process will work.